Silver Daily Chart Review: Up And Away?

Silver started to bottom yesterday and now has soared this morning. This could be the start of the next leg up from a pretty steep, and straight decline.  Another very steep and much longer decline ended in early May which could all work as wave two corrective declines.  

Last month I showed a potential wave 1-2 for the 2016 decline, but there is too high of a chance that the 2016 top was an “A” wave top in Minor degree.  The entire silver bull market going way back to the 1993 bottom can only fit into a diagonal which are zigzags connected together, producing the wild spikes and overlapping patterns, that make up the silver market. We have to search far and wide to see some clean impulse waves, and even then they are small degree moves. 

In silver, I have to keep wave positions on two separate patterns, and the above pattern has an “A” wave top but in Minor degree.  It has to be in Minor degree if the 4th wave bottom is in Intermediate degree. Silver has done this many times in the past, so it will be interesting to see if silver will hold this pattern on a 5th wave.

A few other asset classes also could work as a 5th wave zigzag, so silver is not the only one.  In the long run an “ABC” zigzag bull market is very much the same as a 1-2-3 impulse wave count.  Until wave 3 materializes, we can work both patterns.  When this does happen, other indicators should also start to show up, so it is not just one thing we have to look for when the next major peak hits again. 

Even now silver could roar up as another zigzag to a wave one as well, which would make the present wave 1 peak a bit too early.

I’m sure you have heard of $200 silver forecasts, but since 1980 silver couldn’t even manage to hit $50 never mind $200.  If we are really lucky maybe silver will give us another triple top, around the $49 price level, but until that actually happens, any price forecasts are just mythical numbers thrown out to the public based on fundamental analysts.  

Longer term I’m bullish on silver, and now we need more evidence to keep the silver bull market alive and kicking.